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Outcome Probability Return Boom 60% 27.7% Normal 25% 19.5% Recession 10% 13.6% Depression 5% 9.5% What is the arithmetic expected return on this asset?
| Outcome | Probability | Return |
| Boom | 60% | 27.7% |
| Normal | 25% | 19.5% |
| Recession | 10% | 13.6% |
| Depression | 5% | 9.5% |
What is the arithmetic expected return on this asset?
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Investment Science
Authors: David G. Luenberger
1st Edition
0195108094, 978-0195108095
